> For the complete documentation index, see [llms.txt](https://docs.cream.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cream.finance/arbitrum/lending/interest-rate-model.md).

# Interest Rate Model

## APY Function

**Borrow APY**

\= \[1 + Base + Multiplier \* min(UtilizationRate, Kink) + max(JumpMultiplier \* UtilizationRate - Kink, 0)] ^ 2102400 - 1

**Supply APY**

\= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY

\= Distribute \[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) to all suppliers, and convert it into APY

\= {\[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) / Total Supply}, and convert it into APY

\= {1 + \[(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1

\= **{1+\[(1+Borrow APY)^(1/BlocksPerYear)-1]\*(1-Reserve Factor)\*Utilization Rate}^BlocksPerYear-1**

{% hint style="info" %}
BlocksPerYear = 2,102,400 (15 sec per block)
{% endhint %}

{% hint style="info" %}
Find other variables in [Markets](https://app.cream.finance/markets/arbitrum)
{% endhint %}

## Major

![](/files/-MeyhNPyd_SGxgs6t9oD)

| Parameter        | Value                                                                                                                |
| ---------------- | -------------------------------------------------------------------------------------------------------------------- |
| Category         | Major                                                                                                                |
| Tokens           | ETH                                                                                                                  |
| Base             | 0%                                                                                                                   |
| Multiplier       | 15%                                                                                                                  |
| JumpMultiplier   | 200%                                                                                                                 |
| Kink 1           | 80%                                                                                                                  |
| Kink 2           | 90%                                                                                                                  |
| Contract Address | [0x3FaE5e5722C51cdb5B0afD8c7082e8a6AF336Ee8](https://arbiscan.io/address/0x3FaE5e5722C51cdb5B0afD8c7082e8a6AF336Ee8) |

## Stable

![](/files/-MeyhooS3AqFaWto4BNT)

| Parameter        | Value                                                                                                                |
| ---------------- | -------------------------------------------------------------------------------------------------------------------- |
| Category         | Stable                                                                                                               |
| Tokens           | USDC, USDT                                                                                                           |
| Base             | 0%                                                                                                                   |
| Multiplier       | 18%                                                                                                                  |
| JumpMultiplier   | 800%                                                                                                                 |
| Kink 1           | 80%                                                                                                                  |
| Kink 2           | 90%                                                                                                                  |
| Contract Address | [0x7ef18d0a9C3Fb1A716FF6c3ED0Edf52a2427F716](https://arbiscan.io/address/0x7ef18d0a9C3Fb1A716FF6c3ED0Edf52a2427F716) |

## Governance + Seed

![](/files/-MfHVQTTiisDMldTfQAm)

| Parameter        | Value                                                                                                                |
| ---------------- | -------------------------------------------------------------------------------------------------------------------- |
| Category         | Governance & Seeds                                                                                                   |
| Tokens           |                                                                                                                      |
| Base             | 0%                                                                                                                   |
| Multiplier       | 20%                                                                                                                  |
| JumpMultiplier   | 500%                                                                                                                 |
| Kink 1           | 70%                                                                                                                  |
| Kink 2           | 80%                                                                                                                  |
| Contract Address | [0x5Dc3A30d8c5937f1529C3c93507C16d86A17072A](https://arbiscan.io/address/0x5Dc3A30d8c5937f1529C3c93507C16d86A17072A) |